EU slashes UK growth outlook due to Brexit ‘uncertainty’

AFP, BRUSSELS: The EU yesterday slashed Britain’s growth forecast for this year and said the slowdown would continue through 2019 as uncertainties over Brexit weigh on the economy. Growth in Britain had “slowed markedly” in 2017 and was projected to fall to 1.5 per cent for the year, the EU said in its autumn forecast, down from 1.8 per cent in its spring forecast.

The figure puts Britain’s economy joint lowest in the bloc with Italy, and far below both the dramatically upgraded eurozone forecast of 2.2 per cent growth for 2017 and the wider EU outlook of 2.3 per cent.

Britain’s growth was expected to tumble further to 1.3 per cent in 2018, the same as in the spring forecast, and then to just 1.1 per cent in 2019, a new prediction, it said.

“Economic growth in the UK has been slowing since the start of the year, as higher consumer prices constrained private consumption growth,” the EU forecast said.

“Based on a purely technical assumption of status quo in terms of trading relations between the EU27 and the UK, growth is still expected to remain subdued over the forecast horizon.” The EU also warned that “uncertainty continues to weigh on business investment” in Britain.

EU slashes UK growth outlook due to Brexit uncertainty

AFP, BRUSSELS: The EU yesterday slashed Britains growth forecast for this year and said the slowdown would continue through 2019 as uncertainties over Brexit weigh on the economy. Growth in Britain had slowed markedly in 2017 and was projected to fall to 1.5 per cent for the year, the EU said in its autumn forecast, down from 1.8 per cent in its spring forecast. The figure puts Britains economy joint lowest in the bloc with Italy, and far below both the dramatically upgraded eurozone forecast of 2.2 per cent growth for 2017 and the wider EU outlook of 2.3 per cent. Britains growth was expected to tumble further to 1.3 per cent in 2018, the same as in the spring forecast, and then to just 1.1 per cent in 2019, a new prediction, it said. Economic growth in the UK has been slowing since the start of the year, as higher consumer prices constrained private consumption growth, the EU forecast said. Based on a purely technical assumption of status quo in terms of trading relations between the EU27 and the UK, growth is still expected to remain subdued over the forecast horizon. The EU also warned that uncertainty continues to weigh on business investment in Britain.